In a significant development, Pakistan and China officially signed a momentous agreement worth $4.8 billion on June 20th. The deal entails the construction of a 1,200-megawatt nuclear power plant, marking a substantial step towards bolstering Pakistan's energy infrastructure.

Prime Minister Shehbaz Sharif lauded the investment from China, emphasizing the long-standing and dependable alliance between the two nations. This collaboration is expected to enhance Pakistan's energy production capabilities and contribute to its overall socio-economic progress.

Following the formal signing of the memorandum of understanding between China National Nuclear Cooperation and the Pakistan Atomic Energy Commission, Prime Minister Shehbaz Sharif announced the immediate commencement of the Chashma 5 project.

“Investment from China in this project to the tune of $4.8 billion sends a message loud and clear that Pakistan is a place where Chinese companies and investors continue to show their trust and faith,” Sharif said.

Pakistan's ambitious Chashma 5 project, set to be constructed in the central province of Punjab, will mark a significant milestone in the country's transition away from fossil fuels. With China's support, Pakistan aims to reduce its dependence on conventional energy sources.

Notably, Pakistan's nuclear energy production capacity received a boost to 1,400 MW when its sixth nuclear power plant, aided by Chinese assistance, commenced operations two years ago. This plant, generating 1,100 MW, is situated in Karachi, a major southern port city.

In light of Pakistan's ongoing battle to address a balance of payments crisis, Prime Minister Shehbaz Sharif expressed gratitude to China for extending a $100 million discount on the Chashma 5 project. The financial relief comes as significant support to the struggling government.

While it remains uncertain whether the latest investment is part of China's committed $65 billion infrastructure-building package under the Belt and Road Initiative for Pakistan, the collaboration demonstrates the deepening ties between the two nations.

Originally scheduled to commence years ago, Sharif acknowledged the Chinese side's understanding and cooperation in not rescheduling costs despite the project's prolonged delay. Instead, an initial sum of $104.53 million (30 billion Pakistani rupees) has been disbursed by the Chinese partners to initiate the project.

Image source: CNN